Tanzania has enacted a sweeping new policy that bars non-citizens from engaging in various small-scale business activities as part of a national push to protect and empower local entrepreneurs.
The regulation—titled the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025—came into effect on July 28, 2025, following its publication under Government Notice No. 487A.
The directive was signed by Dr. Selemani Jafo, Minister for Industry and Trade, and outlines 15 restricted business sectors that are now off-limits to foreigners.
The government argues that these sectors are vital to grassroots economic development and job creation for Tanzanians. Prohibited activities for non-citizens include:
- Operating salons, eateries, and small retail shops
- Running mobile phone repair kiosks and mobile money transfer services
- Tour guiding and small-scale tourism services
- Domestic, office, and environmental cleaning
- Small-scale mining and informal postal services
- Owning or managing curio shops, museums, radio/TV stations
- Acting as brokers or agents in property or business transactions
- Engaging in clearing and forwarding services
- Buying crops directly from farmers
- Operating gambling ventures outside licensed casinos
- Running micro and small manufacturing industries
Violators face strict penalties: fines up to Tsh10 million (~$3,900), imprisonment for up to six months, or both. Additionally, non-citizens found in breach may lose their residence permits and visas.
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Tanzanians who assist or enable foreigners in these banned activities may be fined Tsh5 million (~$1,950) or jailed for up to three months.
According to BBC, the policy has also sparked concerns across the East African Community (EAC), where such unilateral restrictions are often viewed as non-tariff barriers that threaten regional integration and economic cooperation.
With an estimated 40,000 Kenyans living and working in Tanzania—many of them in the informal sector—the new ban is expected to disrupt livelihoods and potentially strain diplomatic ties.
Neighbouring countries such as Rwanda, Burundi, South Sudan, Somalia, and the DRC may also be affected, raising fears of reciprocal restrictions.
The restriction is part of a broader nationalist economic strategy under President Samia Suluhu Hassan. In May 2025, Tanzania also banned the use of foreign currencies—including the U.S. dollar—for domestic transactions, reinforcing the exclusive use of the Tanzanian Shilling (TZS) in all internal business dealings.
While the government defends these moves as necessary for economic sovereignty and citizen empowerment, critics warn they may discourage foreign investment and harm regional business relations.
Image Credit: Business Insider Africa
